Sembcorp, DBS seen exceeding Q4 forecasts: report

Downside risks are anticipated for companies such as Wilmar International, and Singapore Exchange.

The 4Q24 earnings season will likely see around 80% of covered companies reporting results in line with forecasts, with Semcorp Industries, and DBS Group amongst others expected to exceed projections, CGS International said.

In its strategy note, CGS International said some companies are projected to exceed expectations, including Sembcorp, Seatrium, iFast Corporation Ltd., DBS, Frasers Logistics & Comm. Trust, Keppel DC REIT, SingTel, and Singapore Airlines.

On the other hand, downside risks are anticipated for companies such as Wilmar International, Singapore Exchange, CDL Hospitality Trust, ESR-REIT, and Far East Hospitality Treat.

In the capital goods sector, industrials are expected to show improved earnings in the second half of 2024. Companies like Yangzijiang Shipbuilding, Keppel, and ST Engineering are forecasted to benefit from higher gross margins and strong order wins.

Sembcorp may experience seasonal weakness in its renewable energy segment, but this could be offset by stronger performance in its gas and related services. Seatrium is expected to secure $14.4b in order wins with an improved gross margin of around 7%.

Additionally, ST Engineering is likely to report stronger profits due to lower finance costs and a turnaround in its urban solutions segment.

The banking sector presents a mixed outlook, with seasonal softness in earnings expected for 4Q24. DBS is likely to experience a slight expansion in its net interest margin (NIM), whilst OCBC and UOB might face slight declines.

The financial provider said fee momentum and wealth management income could slow down in this quarter. Despite this, the banking sector remains attractive as a dividend play, offering yields of approximately 5-5.6% for FY25.

In the REITs sector, mixed performance is anticipated. Factors such as high occupancy rates, positive rental reversions, and acquisitions may drive topline growth. However, higher interest expenses could partially offset these gains, impacting distribution per unit.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia